MCLEAN, Va. - Freddie Mac (OTCQB: FMCC (OTC:FMCC)) announced today that the 30-year fixed-rate mortgage (FRM) has seen a slight decrease, averaging 6.99 percent, according to its Primary Mortgage Market Survey® (PMMS®). This represents a small retreat from last week's average of 7.03 percent.
The 15-year FRM also dropped to an average of 6.29 percent, down from the previous week's average of 6.36 percent. In comparison, a year ago, the 30-year and 15-year FRMs averaged 6.71 percent and 6.07 percent, respectively.
Sam Khater, Freddie Mac's Chief Economist, indicated that the dip in mortgage rates is a response to data suggesting a slowdown in economic growth. Khater expects mortgage rates to modestly decline over the remainder of 2024. He advises that while waiting for lower rates might offer potential buyers minor savings, actively seeking the best rate available could prove significantly beneficial.
The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20 percent down payment and possess excellent credit.
Freddie Mac, established in 1970, has a longstanding mission to make housing accessible for families across the United States, promoting liquidity, stability, affordability, and equity in the housing market through various economic cycles. The organization has historically played a critical role in enabling millions of families to buy, rent, or maintain their homes.
This information is based on a press release statement from Freddie Mac.
In other recent news, Freddie Mac reported a series of fluctuations in the 30-year fixed-rate mortgage rates. The rates dipped under 7% for the first time since early April, averaging at 6.94%, a decrease from the previous week's 7.02%. However, a subsequent report showed a rise for the fifth consecutive week, reaching an average of 7.22%. The rates then steadied around 6.82%, a minor increase from the previous week's 6.79%. Lastly, another dip was reported, bringing the rate down to an average of 6.79%.
These fluctuations come amidst a fluctuating housing market, with reports of a decrease in both existing and new home sales, and a decline in single-family housing starts and building permits. However, Freddie Mac's Chief Economist, Sam Khater, noted an improvement in housing inventory, which could potentially moderate the growth of home prices. The changes in mortgage rates are of significance to potential homebuyers and the broader economy, influencing consumer spending and the construction industry.
These developments were reported based on data from Freddie Mac's Primary Mortgage Market Survey®, which tracks conventional, conforming home purchase loans for borrowers who place a 20 percent down payment and possess excellent credit.
InvestingPro Insights
Freddie Mac (OTCQB: FMCC), a key player in the U.S. housing market, has recently shown signs of financial strength according to the latest data from InvestingPro. With a significant market cap of $4.9 billion, the company boasts a remarkable year-to-date price total return of 72.94%, reflecting investor confidence and market momentum. Additionally, Freddie Mac's revenue has seen a substantial increase over the last twelve months as of Q1 2024, with a growth rate of 35.37%, indicating robust financial performance in the face of economic headwinds.
InvestingPro Tips suggest that Freddie Mac is expected to see net income growth this year, a positive sign for potential investors considering the company's role in the financial services industry. Moreover, the stock is known for its high price volatility, which could offer opportunities for traders looking for short-term gains. For those interested in deeper analysis, there are additional InvestingPro Tips available which can be accessed at https://www.investing.com/pro/FMCC.
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